You Can Measure the ROI of Social Media

Measuring Social Media ROI is not impossible. It simply requires marketers to ask better questions and to understand 1) what social media really is, and 2) how social can be integrated into their current marketing efforts. This is a presentation will help demystify Social Media ROI, and provide insight into ways you can begin to define the ROI of Social Media for your business.

Transcript of "You Can Measure the ROI of Social Media"

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Measuring the ROI of Social Media

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EINSTEIN’S QUOTE IS APPROPRIATE• There is a lot of activity in Social Media that can be tracked, but not everything needs to be measured when it comes to determining ROI.• In this presentation we will: 1. Demystify Social Media ROI 2. Talk about how you can begin to track Key Performance Indicators (KPI) that can lead to ROI 3. What you really need to be asking yourself when it comes to finding Social Media ROI 4. Ways you can begin to determine ROI Measuring the ROI of Social Media

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THE SECRET ROI FORMULA DOESN’T EXSIST• There isn’t one way you will be able to identify Social Media ROI.• Client’s needs are different, and ROI and KPI may mean very different things depending on what their overall objectives are.• Social Media can be built around existing financial models, but social metrics and financial metrics behave very differently.• Your challenge will be to find the relationships between your Social Media activities that lead to direct ROI Measuring the ROI of Social Media

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Us Understand What Social Media Really Is and How It Relates to ROISocial Media Measuring the ROI of Social Media

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BEFORE YOU GO HUNTING FOR ROI…You need to be sure you understand what Social Media really is,and how it is going to work within your business and company. HELPFUL RESOURCE 1. Are you listening? Feel free to check out our presentation 2. Have you identified your Content Bubble? we gave at BlogWorld LA – Breaking 3. What are your plans for community building? Down Your Content for the Social Web 4. How will your social efforts bridge the gap between We also post a lot of content on our your customer and your brand or product? blog that helps break down Social 5. Have you identified what your current marketing Media. objectives are? 6. Have you identified how Social Media will integrate those objectives?Trying to determine Social Media ROI without doing yourhomework is a recipe for disaster! Measuring the ROI of Social Media

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Social Media Is Not A Pair of Pants Measuring the ROI of Social Media

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What’s the ROI ofPushing A Button? Measuring the ROI of Social Media

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Social MediaIs A Must Have… Almost Measuring the ROI of Social Media

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THE ROI OF PUTTING YOUR PANTS ON???• You may have heard the above phrase as an answer to the ROI question of Social Media. The ROI of putting your pants on in the morning is that you won’t get arrested.• Ignore those who say Social Media ROI can’t be measured. It can. Avoid catchy responses like Return on Engagement or Return on Investment.• If you plan to blast the internet with auto populated content, don’t concern yourself with ROI. Spamming people with marketing messages is not Social Media. You will be ignored so there won’t be anything for you to measure, anyway.• It’s not about why should we use Social Media, but how?• However, that doesn’t mean we can forget to measuring it! Measuring the ROI of Social Media

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Social Media Does NotWork In A Cave Measuring the ROI of Social Media

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The Problem With SocialMedia ROI Is Social Media Measuring the ROI of Social Media

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DON”T ISOLATE SOCIAL MEDIA• Social Media has elements that can stand alone, but combining it with your other media/marketing will help you identify Social Media ROI.• Traditional ROI tracking relies on laser focused formulas. While Social Media is much broader and it’s an organic medium.• Social Media doesn’t always fit into conventional marketing measurement, so your tracking must be flexible and adjust accordingly.• So, if you plan on measuring Social Media alone and not integrated, be prepared to chase some chickens! Measuring the ROI of Social Media

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Both Social Media and ROI Should Not Be Defined by Channels or Tools Measuring the ROI of Social Media

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Social Media Doesn’t AlwaysLead to the Money Measuring the ROI of Social Media

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SOCIAL MEDIA IS NOT ABOUT THE TOOLS!• Therefore, Social Media ROI is tool agnostic.• Asking what’s the ROI of a Facebook Page is like asking what’s the ROI of a hammer.• Traditional ROI is calculated after the campaign. You crunch everything and discover what the ROI was.• Social Media ROI can not be predicted because it is happening now - not then or later.• ROI is not expectations. It’s okay to take into consideration what happened, but don’t build your ROI models solely off expectations. Measuring the ROI of Social Media

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So, How Do WeFind the ROI ofSocial Media? Measuring the ROI of Social Media

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Finding the ROI of SocialMedia Is Dependent On: 1) What You Are Asking 2) What You Are Measuring Measuring the ROI of Social Media

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You Need to Ask the RightQuestions Measuring the ROI of Social Media

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ASK THE RIGHT QUESTIONS!Asking what the ROI of Social Media is not an answerablequestion. Instead try asking the following:• What is the ROI of our Blogger Outreach Program in relation to sales of our new BBQ Sauce?• What was the ROI of our social media-driven awareness campaign for our new board game last quarter?• What is the ROI of cutting back 35% of our traditional print collateral spending and focusing more on social media initiatives?• OR what is the identifiable KPI that will lead to ROI of our Blogger Outreach, Loyalty Program, or Campaign Fund Raiser in Social Media? Measuring the ROI of Social Media

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What Is Your Overall MarketingObjective? Measuring the ROI of Social Media

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IF YOU CAN”T ANSWER THIS, YOU’RE IN TROUBLE!Your marketing objectives need to be defined before you start anysocial media program:• If you don’t have this defined, and you are not measuring this now; don’t try squeezing ROI out of Social Media.• Define what it is you are currently measuring. Define where you are not.• What is making you money? How can social media be integrated into these positive marketing efforts?• What is loosing you money? Where can social media be leveraged to help lessen the impact? Measuring the ROI of Social Media

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3 Categories ROI Can Be Found• Sales• Customer Loyalty Programs• Awareness of A Brand or Product Measuring the ROI of Social Media

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It’s About Behavior Not Impressions Measuring the ROI of Social Media

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LIKES AND FOLLOWERS ARE NOT ROI• When measuring Social Media ROI, focus on the behavior and actions that are happening as it relates to your marketing objectives.• “Behavior” on your social networks can include how many people clicked on a specific promotion, who is sharing your content, how many customers are mentioning your brand/product, etc.• Key Performance Indicators (KPI) are direct actions people take. It is what they are doing within your social networks. KPI may not be directly related to ROI.• However, KPI can build a road map that can help you identify ROI. Measuring the ROI of Social Media

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ESTABLISHING ESTIMATED VALUE CAN HELP IDENTIFY ROIAfter you have identified your marketing objective, see if you canassign specific variables or categories an estimated value.• Establish values for a.) desired business outcomes, and b.) their associated social media qualifiers.• Define tangibles - customers, leads, lost customers, followers, etc. Do these have an estimated value?• If your goal is to increase brand awareness, then a “subscriber” to your email newsletter could have an associated value (lead).• Maybe you identify the value of your current customers and compare that to the cost of a customer you’ve lost. Measuring the ROI of Social Media

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IT’S IMPORTANT TO RECOGNIZE THE DIFFERENCE• Some of your social media efforts could be directly linked to financial ROI, but recognizing that a bulk of your efforts may not be, is what will help you stream line the process.• Remember the quote from Einstein at the beginning of this presentation, not everything counts! Measuring the ROI of Social Media

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Qualitative: What Can Be Measured• Cost Savings That Social Media Programs Have Had On Customer Service and/or Customer Acquisitions• Brand Awareness• Sales Generated From Social Media Efforts• Customer Loyalty (Retention) to A Brand• Web Traffic (Estimated Value) From Social Networks• New Leads (Estimated Value) From Social Networks• The Numbers – Fans, Followers, Subscribers Measuring the ROI of Social Media

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Quantitative: What Should Be Measured• Cost Savings That Social Media Programs Have Had On Any of Your Company’s Customer Relations and Bottom Line.• Actual Sales Generated From Social Media Efforts• New Leads (Estimated Value) From Social Networks Measuring the ROI of Social Media

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LOOK FOR RELATIONSHIPS IN YOUR MARKETING• Lay out all your marketing efforts (traditional, media, TV, radio, digital, social, etc.) and look at how the relate to each other.• Look at specific periods of time during your campaigns.• Look to see where your marketing efforts overlay and connect.• Example: Was there an increase of sales, and an increase in website views while you increased your blog/content output?• Mark this with a flag and use it as a starting point for your continuing ROI efforts. Measuring the ROI of Social Media

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ROBOTS PUMP OUT NUMBERS - HUMANS DO ANALYSIS• There are a number of tools that can help you see the data.• It is up to you to define what that data really means to the client.• Dell uses Radian 6, but even they have to make their own ROI model modifications to find what they are looking for and what they want to measure.• The human analysis is important, because it helps us understand what is really happening.• The human analysis helps define benchmarks and most importantly, how to build off those benchmarks moving forward. Measuring the ROI of Social Media

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Remember:Focus On the Activityand Behavior Measuring the ROI of Social Media

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DEFINING SOCIAL MEDIA ROI TAKES A LOT OF WORK!• Remember to focus on the activity and the behavior that came out of your social marketing activities.• Find how the behavior connects to a financial gain or loss.• Identify estimated values and ask the right questions.• As social becomes integrated with every aspect of your company/organization so too should it’s metrics.• Identify what can be measured vs. what should be measured.• If you are not measuring other business analytics and calculation ROI for those efforts, don’t start with trying to calculate social media ROI. Measuring the ROI of Social Media

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Now Your Can CalculateROI With Your Pants On! Measuring the ROI of Social Media

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Thank You! MoncurAssociates.comFacebook.com/MoncurAssociates Our Blog @ThinkMoncur @DaveMurr Have A Great Day! Measuring the ROI of Social Media

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Photo CreditsConfused – by Petras GagilasSelling Pants at the Crossroads Center in Lilongwe - by khym54Ejector Button - by Kevin DavisWater Bottle - by Klearchos KapoutsisCave - by Denise MayumiLeroy and the Ruler - by Kevin PerlineUntitled - by Mike DoughertyTool Rack - by Lenore EdmanMoney - by 401kZigZag - by Big City CalFAQs on Keyboard - by Photosteve101Goal - by Swen-Peter Ekkebus Measuring the ROI of Social Media

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Photo CreditsConfused Bamboo - by Nostaw21Affirmative - by TorleyI Am A Sensitive Artist - by Kevin DooleyMeasuring Spoons - by Julie MagroLayers - by RosemaryRobot at the British Library Science Fiction Exhibition - by Dan ThorntonI Do Work Hard - by Steven HarrisMeasuring West - by Lenore EdmanNo Pants Metro Ride 5 - by Ben Schumin Measuring the ROI of Social Media